P10-1A Calculate Variances   The following summary data relate to the operations of Dobson Company for April, during which 9,000 finished units were produced. Normal monthly capacity was 20,000 direct labor hours.                                                                                           Standard               Unit Costs Total Actual Costs                       Direct materials:                           Standard (4 lb. @ $2.20/lb.) $8.80                         Actual (38,000 lb. @ $2.00/lb.)   $76,000                       Direct labor:                           Standard (2 hr. @ $11.00/hr.) 22.00                         Actual (18,500 hr. @ $11.30/hr.)   209,050                       Variable overhead:                           Standard (2 hr. @ $3.00/hr.) 6.00                         Actual   54,900                       Total $36.80 $339,950                                                   Required                           Determine the following variances and indicate whether each is favorable or unfavorable:                                                 a. Materials price and efficiency variances                                                       b. Labor rate and efficiency variances                                                       c. Variable overhead spending and efficiency variances

Q: Payback Period and Accounting Rate of Return: Equal Annual Operating Cash Flows with Disinvestment…

A: Payback Period The term "payback time" refers to the amount of years needed to recoup the initial…

Q: 1."Other things being equal, do both companies appear to have the ability to meet their obligations…

A: Margin of safety to creditors decreases the margin available as earnings before interest and tax, in…

Q: Ingredient B4376 is used to make Razor Corporation's major product. The standard cost of Ingredient…

A: when the product is made by the company there is certain cost that is set by the company such cost…

Q: Wingtip, a building company, owns a property which is currently occupied by its subsidiary. How…

A: In order to maintain uniformity and consistency to be followed across all the companies and entity…

Q: Reliable accounting and financial reporting aid society in allocating resources in an efficient…

A: INTRODUCTION: The term "auditing" normally refers to an objective review and assessment of a…

Q: Required: Witt Recreation Company uses operations costing and assigns conversion costs based on the…

A: Operation Costing is a method of costing under which material cost and other operation cost is added…

Q: The discount on bonds payable or premium on bonds payable is shown on the balance sheet as an…

A: The amount that the issuer owes bondholders is kept in an account called "Bonds Payable." This…

Q: *3. The Houston Rockets basketball team receives $5,000 for season tickets on August 1. By December…

A: Unearned revenue is the ledger that represents the liability of an entity. It is credited when the…

Q: Lokton plc has a piece of equipment which it bought on 1 January 2014 for £1,000,000. The equipment…

A: Impairment loss is booked when the market value of the assets is less than the current book value of…

Q: Budgeted DM Purchases $69,000 77,000 78,700 77,800 76,200 All purchases are paid for as follows: 40%…

A: The correct answer is: (A) $77,250  Payments made for October = $76,200 *40% i.e $30,480 September =…

Q: Which of the following statements is/are FALSE:

A: To ascertain that among given which among 4 are false

Q: During its current quarter, Karbon Ltd purchased an office building for a total of $2296632 before…

A: The input tax credit is the credit available for the taxes paid on input and capital goods. Input…

Q: Ted Barnes has 100 acres of unimproved land, which he actively farms. Its cost basis is $10,000 but…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Desk purchased January 10 for $3,000; 8-year useful life; $600 salvage value.  Calculate MACRS…

A: The practice of allocating the cost of a tangible or physical item over the course of that asset's…

Q: Antonio's bank foreclosed on his retail building when he stopped making loan payments. The…

A: If the borrower borrows a loan to purchase a property then he has to secure that loan by purchased…

Q: Nyfe, Ork and Poon decide to dissolve their partnership on 1 December 2015 after being in business…

A: In case of dissolution of the partnership, the partnership comes to an end and the assets are…

Q: Question 4) Below is Tom's balance sheet at the start of December and his T-Accounts for the month.…

A: 1. cash = 7000 + 2670 +700 -2100 -1400 - 400 (Loan payment not entered into cash account*) = 6470 2.…

Q: A cash-generating unit comprises the following assets:

A: The impairment loss is the loss suffered by the company when the fair value of the asset in lower…

Q: On 1 December 2017 Suvi Singh, a resident of the republic, purchased a primary residence for R2 300…

A: If an immovable asset is sold before the expiry of 24 months from the date of purchase it is known…

Q: Project Y requires a $350,000 investment for new machinery with a four-year life and no salvage…

A: Calculation of Cash Flow Net Income $56,000 Add: Depreciation $87,500 Cash Flow after Tax…

Q: How many sections income statement is divided??

A: An income statement charts a company's revenue, costs, and profitability through time. It is also…

Q: Mainstream Corporation manufactures two products, I and II, from a joint process. A production run…

A: Cost allocation is the process of cost accounting that identifies, allocates, and assigns the costs…

Q: A $8,500 bond had a coupon rate of 5.75% with interest paid semi-annually. Christopher purchased…

A: The valuation of a bond is done by discounting the future cash flows from such bond at the market…

Q: Current Attempt in Progress Sweet Company manufactures desks. Most of the company's desks are…

A: As per Generally accepted accounting principles closing inventory should be valued at a lower of the…

Q: Would Qualifying an Indorsement Be Ethical? Suppose you have taken a promissory note for $3,500…

A: I have taken a Promissory note for $3,500 payable in 12 months with a interest at 10%. But i some…

Q: Record journal entries for the following purchase transactions of Apex Industries. Nov. 6 Purchased…

A: Periodic inventory method: It is a inventory valuation method in which inventory is updated at the…

Q: You put $7,364 in the bank for 13 years at 7%. Using the Future Value of 1 Table, what factor would…

A: when the investment is made by the person or the company there is the growth in investment over the…

Q: Allonby Foods processes frozen meals for sale in grocery and other retail outlets. Two versions are…

A: The following information has been extracted from the given question, Workings- 1. Calculation of…

Q: What does it mean when the Asset Turnover of Jake and Jack is 1.75X. That: a. Jake and Jack has…

A: Asset Turnover = Net Sales / Total Assets

Q: Rosewell Corporation sold $4,000,000, 7%, 10-year bonds on January 1, 2015. The bonds were dated…

A: The total cost of borrowings indicates the amount borrowed by the company for raising funds in…

Q: (a) How much of the lease liability relates to the actual terms of the lease, and how much relates…

A: 1. In the given case, Alpha limited shall be treated as  Sellor -lessee and Omega Ltd shall be…

Q: Daniel and Jan agreed to pay $560,000 for a four-bedroom colonial home in Waltham, Massachusetts,…

A: 1. What is the principal (loan) = cost of home -down payment…

Q: You are considering an investment in Ray company, and want to evaluate the firm's free cash flow.…

A: Operating Cash flows are the Cash inflows and Cash outflows that result from carrying of business.…

Q: Andit sampling involves applying an audit procedure to less than 100 percent of the population for…

A: (a) Audit sampling is an audit technique which is used to provide supporting evidence to form an…

Q: Waylander Coatings Company purchased waterproofing equipment on January 6 for $844,000. The…

A: Depreciation is known as an expense charge on the value of the asset due to a decrease in the value…

Q: ABC Company began operations on January 1, 2023 by issuing 5,000 shares of 8%, $20 par value…

A: The dividend is paid to the shareholders from the retained earnings of the business. The dividend in…

Q: When preparing a bank deposit which of the following is a best practice?   Select one:   a.…

A: Bank Deposit: It is the money deposited into bank by customer into its bank account. Bank uses that…

Q: emicals has two operating divisions. Its Formulation Division in th and then ships them to Ireland,…

A: Tax Liability - The total amount of taxes that a person, business, or other entity owes to the…

Q: Lokton plc has a piece of equipment which it bought on 1 January 2014 for £2,000,000. The equipment…

A: Impairment loss is booked when the market value of the assets is less than the current book value of…

Q: Required information Problem 12-45 (LO 12-3) (Static) [The following information applies to the…

A: Tax liability is the amount payable to the tax authorities on the taxable income calculated as per…

Q: A company which uses the revaluation model for its PPE bought a building on 1 January 2014 for…

A: In the given question, we need to compute the revaluation loss that would affect the statement of…

Q: QDR Company's records show the following information: Cash Accounts Receivable Prepaid Expenses…

A: The accounting equation states that assets equals to sum of liabilities and shareholders equity. The…

Q: In 2022, Maria Corporation changed its method of inventory pricing from LIFO to FIFO. Net income…

A: FIFO is the method for valuation of inventory under which ending inventory is valued on the basis of…

Q: Boysenberry Corp. has two support departments, Personnel (P) and Maintenance (M), and two producing…

A: 1. Direct Method Department P M B F Direct costs $9,000 $13,500 $40,000 $35,000 Allocate dept…

Q: Cost of goods sold Loss on sale of investments Insurance expense Salary expense Administrative…

A: The trial balance represents the final balance of each account of the business. The net sales…

Q: A company had stock outstanding as follows during each of its first 3 years of operations: 2,500…

A: The dividend is declared and paid to the shareholders from the retained earnings of the business.…

Q: Lawyer, who is single, has lived in his principal residence for several decades. Lawyer purchased…

A: An involuntary conversion refers to the destruction of property or loss of property due to theft,…

Q: The service department at Major Motors sold $48,000 in service last month. They had direct labor…

A: The net income is calculated as difference between revenue and expenses. The income statement is one…

Q: Responsibility reports are used for

A: 1. The Responsibility report is prepared for each manager who controls the responsibilty center. 2.…

Q: Question 1: The following information relates to a company's accounts receivable: account receivable…

A: Allowance for uncollectible accounts is the provision created by the entity in the books of accounts…

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance. 

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.